February 7: The half-yearly review of the current fiscal year 2080-81 BS (2023-24) by Nepal Rastra Bank (NRB) suggests positive indicators of the economy.

According to the central bank's assessment, based on the six months' data ending in mid-January, there is an improvement in overall economic and financial indicators.    
Remittance inflows increased by 25.3 percent to reach Rs 733.22 billion in the review period, compared to a 24.3 percent increase in the same period last year.

In the review period, the number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stood at 207,970 and taking approval for renew entry stood at 135,435. In the previous year, such numbers were 275,643 and 142,548 respectively.    
The net transfer increased 24 percent to Rs 799.51 billion in the review period. Such a transfer had increased 22.7 percent in the same period of the previous year.    
The Balance of Payments (BOP) remained at a surplus of Rs 273.52 billion in the review period against a surplus of Rs 92.15 billion in the same period of the previous year.

Gross foreign exchange reserves increased by 18.0 percent to Rs 1816.57 billion in mid-January 2024 from Rs 1539.36 billion in mid-July 2023.

Deposits of banks and financial institutions rose by 6.6 percent and private sector credit increased 4 percent. On y-o-y basis, deposits increased 14.9 percent and private sector credit increased 4.9 percent.

The y-o-y consumer price inflation moderated to 5.26 percent in mid-January 2024 compared to 7.26 percent a year ago. Food and beverage category inflation stood at 5.77 percent whereas non-food and service category inflation stood at 4.85 percent in the review month.    
The report state that the y-o-y price index of ghee and oil, vegetables, meat and fish and transportation sub-categories exhibited a downward trend in mid-January 2024. Additionally, price index of spices and sugar and sugar products also moderated.

During the review month, the y-o-y import price index, salary and wage rate index and the wholesale price index also moderated. These factors contributed to a moderated consumer price inflation    
Under the Food and Beverage Category, y-o-y price index of ghee and oil, vegetable and meat and fish sub-category decreased by 13.07 percent, 1.04 percent and 0.06 percent respectively in the review month. The y-o-y price index of spices sub-category increased by 35.60 percent, cereal grains and their products 11.38 percent, pulses and legumes 11.14 percent, milk products and eggs 10.29 percent and fruit 10.15 percent.    
Under the Non-Food and Services Category, y-o-y price index of transportation sub-category decreased by 1.62 percent in the review month. The y-o-y price index of recreation and culture subcategory increased by 12.84 percent, miscellaneous goods and services 9.73 percent, education 8.92 percent, furnishing and household equipment 5.18 percent and clothes and footwear 4.96 percent.    
The y-o-y consumer price inflation in the Kathmandu Valley, Terai, hill and mountain region stood at 5.76 percent, 4.78 percent, 5.40 percent and 6.57 percent respectively in the review month. Such inflation in these regions was 6.93 percent, 7.49 percent, 7.30 percent and 6.69 percent respectively a year ago.    
The y-o-y wholesale price inflation stood at 3.36 percent in mid-January 2024 compared to 9.82 percent a year ago. The y-o-y wholesale price index of consumption goods, intermediate goods and capital goods increased 6.16 percent, 1.99 percent and 2.71 percent respectively. The y-o-y wholesale price index of construction material decreased 1.08 percent in the review month. The y-o-y salary and wage rate index increased 5.56 percent in mid-January 2024 compared to 10.27 percent a year ago. The y-o-y salary index and wage rate index increased 1.05 and 6.92 percent respectively in the review month.    
Imports fell by 3.1 percent, exports by 7.2 percent and trade deficit by 2.6 percent. -- RSS